Exclusive:Revealed: Edinburgh Council spend almost £100m in two years buying up private newbuild homes

The council is being criticised for failing to come up with a long-term solution to the housing crisis.

Edinburgh Council has spent almost £95.5 million buying newbuild homes from private developers in the past two years, it can be revealed.

The local authority has shelled out £95,446,000 buying up 335 newbuild properties to be used for social housing since January 2023, with the average home costing the council almost £285,000.

According to figures released through a Freedom of Information request, this includes buying 20 homes in 2023/24 for £5,481,462 and 202 homes in 2024/25 for £56,940,127.

Millions is being spent on buying up private newbuild properties for social housing. | Andrew Matthews/Press Association

A further 113 newbuild properties purchased this financial year for £33,024,411 are still to be legally finalised.

The purchases have been revealed amid criticism the council is not providing value for money for taxpayers, and claims the move not helping to fix the Scottish capital’s housing crisis.

Last year Edinburgh declared a housing emergency, with the number of homeless people staying in temporary accommodation nationally reaching a 22-year high.

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The number of people sleeping rough in the capital doubled at the end of last year. It was recently revealed there are more children staying in temporary accommodation in Edinburgh than there is in the whole of Wales combined.

The Scottish Conservatives say while buying these newbuild properties is helping to get more people settled into social housing, it is not a long-term solution to the problem.

Miles Briggs, Conservative MSP for the Lothians, said: “The significant increase in spend by Edinburgh Council on purchasing newbuild homes reflects the housing emergency that we currently have in the capital, but begs a number of questions over value for money.

Miles Briggs MSP | Greg Macvean

“Buying more newbuild homes is understandable in the short term. However, it is not a long-term solution for dealing with Edinburgh’s housing crisis.

“Buying too many homes from private contractors risks destabilising the housing market and increasing prices for private buyers.

“If we are going to significantly increase the availability of social housing in the capital, then we need to see both Edinburgh Council and housing associations supported in building the homes on the sites which have already been granted permission, as well as an urgent drive to bring back the thousands of empty properties in the city.”

Edinburgh Council confirmed it had not spent any money renting newbuild homes from private developers since January 2023.

The Scottish Government has a target of building 110,000 affordable homes by 2032, which means it needs to be building around 11,000 homes every single year. In 2024, only 8,000 affordable homes were delivered.

At the end of last year, housing statistics showed the number of homes starting to be built for social rent fell by 12 per cent, and the number of homes finished for social rent fell by 10 per cent over the course of a year.

The figures also revealed the number of social homes being started was at its lowest level for 20 years, and no social homes were built at all in Clackmannanshire, East Dunbartonshire, Inverclyde or North Ayrshire.

Under former first minister Humza Yousaf, the Scottish Government also slashed hundreds of thousands of pounds from the housing budget, despite ministers declaring a national housing emergency last year.

Lezley Marion Cameron, housing, homelessness and fair work convener at Edinburgh Council, said: “The pressures on Edinburgh’s housing and homelessness services continue to be such that we need a great many more homes and significantly more financial resources from government too.

“Buying new build homes is part of a wider suite of solutions to alleviate Edinburgh’s acute housing shortage. In the past 12 months, we have halved the number of void properties and the recent recruitment of two additional empty homes officers means we are being more proactive in bringing empty homes across our city back into use and can focus efforts where they’re needed most.

“We’ll continue to work closely with Edinburgh’s housing sector and stakeholders to resolve systemic issues and implement innovative solutions to provide the housing people and families across Edinburgh urgently need and deserve.”

Housing Minister Paul McLennan said: “We have a strong track record in affordable housing, having supported the delivery of 135,000 affordable homes since 2007.

“That’s 47 per cent more per head of population than England and 73 per cent more than Wales. We will continue to build on that record with an investment of £768m in the affordable housing budget, a £200m increase on the previous year.

“This will include funding of £40m to local authorities with sustained temporary accommodation pressures.

“We have also boosted investment in affordable homes in Edinburgh to more than £51m this year. Local authorities and registered social landlords will support the delivery of homes in the most effective way they deem fit. This can include purchasing new build properties.”